Daniel Newman, Futurum CEO, joins 'Power Lunch' to discuss where the opportunities exist in technology stocks, Apple's earnings next week and much more.

Daniel Newman, CEO of Futurum, highlighted Alphabet's strong recent performance, noting its nine-day stock rally and improved outlook following solid earnings and advancements in generative AI. He emphasized Alphabet's development of its own infrastructure and chips, as well as the strength of platforms like YouTube and Waymo, positioning the company favorably for future growth.

Newman contrasted Alphabet's momentum with the uncertainty surrounding Apple, citing concerns about Apple's AI strategy and recent market cap losses. He also commented on Tesla's high valuation and volatility, noting the importance of Elon Musk's involvement and the potential impact of his other ventures. Overall, Newman expressed optimism about Alphabet and Meta, while viewing Apple as facing significant risk if it does not adapt effectively to AI trends.

Alphabet looks really well positioned, says Futurum CEO

Here with us now is Daniel Newman. He's the CEO of Futurum. Great to see you. Just, I mean, Alphabet is up, I think, what is it, nine days in a row or something like that? It's the second longest stretch ever. Its longest stretch was 15 years ago. So where do you see the opportunities and where do you think things are a bit overrun? Yeah, well, first of all, Alphabet, it's a catch-up. It's been lagging. It's been behind. I think there's some regulatory overhang. People are concerned about antitrust. They're concerned about the search business. Is it viable? Is it at risk? What happens as open AI take it over? By the way, it was their earnings back in, what was it, January that kind of changed the narrative around this when their search results were pretty good, right? And they are still good. There was one period of time that they looked down just ever so slightly and everyone's like, search is over, it's dead, their business model is in trouble. And they had a few little hiccups with their early AI play. Everyone remembers Bard. But now their generative AI stack looks great. They're building their own infrastructure, their chips. They look really well positioned. And if I'm an investor, I'm looking at the whole situation and I'm saying, look, you're seeing Teslas out a hundred plus forward. Google actually has all the tech. They've got Waymo. They've got YouTube. I was going to say, YouTube's dominating TV. See the graphic in the Journal this weekend? YouTube is becoming TV. Yeah, same with Netflix. And yet, so here I am using ChatGPT, honestly, more like Google than ever before. But it seems like the business not only can absorb that, but have other levers to pull on. I really like that they've been able to be successful training their own models on their own infrastructure. I love NVIDIA. There's no secret there. But if I'm Google and I want to build a vertically integrated stack, I want to increase my margin, I want to diversify the business and have more control of my longevity. I'm really liking that. And like I said, at the price, even with the recent run up, there's just a lot to be optimistic about. So Alphabet looks to be in really, really good shape. Like on the other side, though, Apple's next week. Everybody's going to be watching. You've seen even the biggest bulls on Wall Street have come out and basically said, we don't know. I remember sitting here with you over a year ago, Apple Intelligence was coming and all of us kind of said they have this runway to get it right. And the first batch didn't look so good. But now we're on to like three, four iterations. And it almost feels like they have no confidence. They lost their top researcher. That's going to be a big one to watch. But I still think... Does it even matter? It's done so poorly. I mean, it feels like NVIDIA or Alphabet or one of these other names would probably matter more. But I take your point. Well, I think there's a lot of investors saying, is the selling of Apple, is the pressure overdone? They have $2.4 billion in their moat. Can they get it right? Are people going to defect? Is this going to be the next BlackBerry? Are they going to have a Kodak moment and see everybody run away? I don't think that's going to happen. So Apple has this longer period to get it right. But I think on one end, you've got Google, you've got Meta. Meta has gone all in, $100-plus million packages, bringing in the top researchers, taking them away from open AI, taking them from Apple. They're doing the right thing. So we really like Meta. We really like Google. On the other end, we see Apple as a big risk. And then, of course, Tesla is one of the... What's Apple's biggest risk? What's the biggest problem with Apple? Well, the biggest risk is that they truly do not get this pivot to AI correct. They haven't gotten infrastructure. They don't have their own stack in terms of their development. They don't have a tool. You've heard a lot of people come out. I came out six months ago and said, buy Perplexity. And I want to be very clear. Perplexity does not solve all of Apple's AI woes. Not at all. It's an intent thing. It's just showing that Apple wants to build a product. Right now, you try to use Siri. And Siri is a mess. I think we've talked about this before on the show. And it wants to take you to open AI. What does it say when a company with Apple's balance sheets that spent, what, $600-plus billion on buybacks cannot make the investment, cannot lure in the type of researchers and build the kind of technology that has made it the company that it is today? I think it comes with real risk. But I think it's a lagging risk. With their install base, it's not going to fall apart in the next 12 months. It's just slowly they're going to continue to deprecate down that seven list. And all of a sudden, instead of being the top on those, I mean, there's a trillion dollars in market cap gap between them and NVIDIA now. They've lost a trillion in market cap basically since December. What would you do with Tesla then? Where do they fall? Elon is back in founder mode. And here's the thing is, on a fundamentals basis, I really struggle with the company. You're going to see a big fall in EPS. You're going to see a big fall in revenue. Their energy business is interesting. All the things he's doing with his peripheral companies, with SpaceX and XAI. And you start to see a world where all this comes together. And of course, he's not going to say that publicly. A lot of speculation. But he's generating hundreds of billions in valuation in these non-Tesla companies. But it's all a big story that comes together. XAI plus Tesla plus SpaceX. It gets really interesting. The valuation is eye-watering. It's really hard to get behind. And it's so much higher than everything else in the mag seven. But at the same time, if he's back, if he's fully committed, but the investors are so scared of another tweet about the America's party or him deciding to go on the campaign trail again, and you can see that volatility. So I'm just kind of looking at them out in their own space. You have to have that appetite for discomfort and uncertainty. But the alpha there, the potential, if he says the right thing, does the right thing, is exponential. Well, Daniel, we appreciate you coming. It's going to be a fun couple of weeks to see how they all do. Daniel Newman of Futurum. Thank you.

The next set of peace talks between Ukraine and Russia - the first meeting in seven weeks - is planned for Wednesday in Turkey, President Zelenskyy quoted the head of Ukraine's National Security and Defence Council as saying.

Kyiv

Ukraine Invasion

Zelenskyy says new peace talks planned for Wednesday

A sweeping cyber espionage operation targeting Microsoft server software 'SharePoint' compromised about 100 different organizations as of the weekend, two of the organizations that helped uncover the campaign said on Monday (July 21).

Redmond

Microsoft server hack hit about 100 organizations, experts say

Protestors showed up at the federal courthouse in Boston on Monday amid Harvard's $2 billion legal battle with the Trump administration.

Boston

Protestors gather outside courthouse amid Harvard-Trump hearing

Malcolm-Jamal Warner, an actor and artist who rose to fame as a child as Theodore Huxtable on “The Cosby Show,” has died in a drowning accident in Costa Rica, where he was on vacation with his family, according to a source close to the actor.

Los Angeles

‘The Cosby Show’ star Malcolm-Jamal Warner dead at 54

An off-duty U.S. Customs and Border Protection agent was shot after an apparent robbery went wrong in New York, officials say. New York Mayor Eric Adams said a 21-year-old undocumented immigrant was taken into custody. The agent is in stable condition and is expected to survive.

New York

Off-duty Border Patrol agent shot in NYC by undocumented migrant

The jet crashed onto the campus of Milestone School and College in Dhaka's Uttara neighbourhood, where students were taking tests and attending regular classes.

Dhaka

At least 20 killed after Bangladesh Air Force jet crashes into school

An investigation into Jeju Air's fatal plane crash in December has found "clear evidence" that pilots shut off the less-damaged engine after a bird strike in South Korea, a source told Reuters. But a progress report was not released as planned, after families of the bereaved protested some of its phrasing.

Muan-gun

Report says pilot shut wrong engine before Jeju Air crash

Iran, China and Russia will discuss Tehran's nuclear activities and sanctions on Tuesday, with the E3 nations set for talks on Friday amid threats of reimposing sanctions.

Tehran

Iran to consult with Russia, China ahead of European nuclear talks

Hundreds of Bedouin civilians were evacuated from Syria's predominantly Druze city of Sweida on Monday (July 21) as part of a U.S.-backed truce meant to end fighting that has killed hundreds of people, state media and witnesses said.

As Suwayda

Bedouin civilians evacuate Syria's Sweida as tense truce holds

Japanese Prime Minister Shigeru Ishiba vowed to remain in office on Monday after his ruling coalition suffered a bruising defeat in upper house elections, prompting some of his own party to deliberate his future as the opposition weighed a no-confidence motion.

Tokyo

Japan PM Ishiba vows to stay on after bruising election defeat

Police say Fernando Ramirez drove onto a crowded sidewalk outside a Los Angeles nightclub early Saturday, injuring dozens. He was later shot by a bystander who fled the scene, prompting a citywide search.

Police search for gunman after car-ramming attack in L.A.

Japan's ruling coalition is certain to lose control of the upper house in election, public broadcaster NHK reported, an outcome that further weakens Prime Minister Shigeru Ishiba's grip on power as a tariff deadline with the United States looms.

Japan's ruling coalition loses control of upper house

Iran's foreign minister has said the country France, Germany and the UK are looking to set a date for a meeting for nuclear talks, in what could be a step toward ending the protracted impasse over Iran's nuclear programme and Western concerns.

Middle East Conflict

Iran and three European powers set to resume nuclear talks

The Trump administration said on Saturday (July 19) it will take action against Mexico under its "America First" policy, saying the Mexican government's earlier decision to cut flight slots in Mexico City, which affects U.S. airlines, violates a bilateral air agreement.

Washington

U.S. threatens Mexican flights over cargo, competition issues

U.S. President Donald Trump has sued the Wall Street Journal and its owners including Rupert Murdoch for at least $10 billion, over the report that his name was on a 2003 birthday greeting for Jeffrey Epstein that included a sexually suggestive drawing and a reference to secrets they shared.

Trump sues Wall Street Journal for $10 billion over Epstein report

Over 200 Venezuelans who were deported from the U.S. on allegations of gang membership earlier this year and detained in an El Salvador jail have arrived home to Caracas as part of a coordinated prisoner exchange. Ten Americans held in Venezuela returned to the U.S., officials said.

Caracas

El Salvador sends detained Venezuelans home in swap for Americans

Japanese voters headed to the polls on Sunday (July 20) in a tightly contested upper house election that could unleash political turmoil, with rising prices, immigration concerns and the emergence of a Trump-style "Japanese-first" party threatening to weaken Prime Minister Shigeru Ishiba's grip on power.

Japan heads to the polls for Upper House elections

The violent clashes between the Druze minority, Bedouins and other armed groups in the southern province of Sweida have left at least 900 people dead. Some reports suggest that fighting may have halted early on Sunday.

Damascus

Syrian interim president urges respect of ceasefire in Sweida clashes

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Zelenskyy proposes new round of peace talks with Russia

Stacey Williams, a former Sports Illustrated model who briefly dated Jeffrey Epstein speaks with CNN’s Brianna Keilar and describes Epstein’s relationship with Donald Trump. She also alleges Trump once groped her in 1993, but he denies the claim.

Epstein’s ex-girlfriend describes alleged incident with Trump

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West Hollywood

Driver crashes into line of people in Hollywood, police say he was shot

A boat full of tourists capsized during a storm in one of the country's most iconic tourist destinations, leaving at least 34 dead and eight missing. Rescue efforts continue as a new tropical storm approaches.

Hạ Long Bay

Dozens drown after tourist boat capsizes in Ha Long Bay

The agreement comes after intense clashes displaced tens of thousands of people and contributed to a worsening humanitarian crisis in a region still recovering from over a decade of brutal civil war.

U.S. says Israel-Syria agree to ceasefire, clashes continue in Sweida

Ukraine has appointed a new prime minister, 39-year-old Yulia Svyrydenko, as part of a sweeping government reshuffle announced by President Volodymyr Zelenkskyy. This marks the most significant political shift since the start of Russia's full-scale invasion in 2022.

Yulia Svyrydenko takes charge as Ukraine's new prime minister

Former Brazilian president Jair Bolsonaro, currently on trial at the Supreme Court, has been ordered to wear an electronic ankle monitor. Bolsonaro is accused of leading an alleged attempt to stage a coup to overturn the 2022 election.

Rio de Janeiro

Brazil's Bolsonaro ordered to wear ankle monitor

At least three deputies were killed after an explosion at a Los Angeles County Sheriff's Department training facility, officials said. Attorney General Pam Bondi said federal agents were at the scene.

Three killed in explosion at L.A. County Sheriff's Department facility

The UK's Labour Party has passed a landmark electoral reform, aligning with Scotland and Wales in lowering the voting age from 18 to 16. The change fulfills a key promise by the ruling party but garnered criticism from the Conservative Party.

London

UK lowers voting age from 18 to 16 in historic electoral reform

The U.S. House of Representatives approved a rescissions package to slash $9 billion in foreign aid and public broadcasting funding, sending the bill to President Donald Trump's desk.

U.S. House passes $9 billion cut to foreign aid, public broadcasting

U.S. President Donald Trump on Thursday night ordered Attorney General Pam Bondi to help facilitate the release of grand jury transcripts related to Jeffrey Epstein as the administration faces pressure to share more materials on the case.

Trump orders release of Epstein-related grand jury transcripts

The European Union has agreed to impose a new round of sanctions against Russia, targeting the country's energy and financial sectors in a bid to tighten the screws on the Kremlin's war machine and force a temporary ceasefire in Ukraine.

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